Fitch cuts Modernland Realty

Fitch Ratings said it downgraded PT Modernland Realty Tbk. to CCC- from B.

At the same time, Fitch lowered the $150 million of notes due in 2021 and $240 million of notes due in 2024 the company guarantees to CCC- from B. The recovery rating on the notes remains RR4. The agency removed all ratings from rating watch negative on which they were placed on April 23, Fitch said.

“The downgrade reflects MDLN’s weak liquidity position, which raises doubts about its ability to repay Rp 150 billion of domestic bonds maturing on July 7, 2020, especially as the company has not been able to secure bank financing to repay the bond. MDLN says that it faces problems in collecting payments from residential presales while potential customers in the industrial segment are delaying their purchases,” the agency said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.